What is the difference between a covered call and a normal call option and how to know which one I bought?
Asked 5 years ago
If you own the stock and buy a call is it automatically a covered call?
Osasere Okunloye
Monday, June 28, 2021
In a covered call, the investor sells his call option but has to own the equivalent amount of the underlying security. In a naked call, the investor also sells call option but does not own the underlying security. On most websites, you'll have to choose your preferred. You can contact your broker for more information.
Please follow our Community Guidelines
Related Articles

Know This About the IronFX Broker
Filip Dimkovski
June 15, 2021

eToro vs Binance: Compare Products, Features, Fees, & More
Filip Dimkovski
October 30, 2021

Day Trading Options: Best Brokers and Beginner Strategies
Filip Dimkovski
December 23, 2024
Can't find what you're looking for?
